New Mexico Cracks Down On Shady Cannabis Operations In First Petition Of Its Kind Since Legalization

In an unprecedented move, the New Mexico Cannabis Control Division (CCD) has filed a first-ever petition for a preliminary injunction against a local cannabis business, Sawmill Sweet Leaf LLC.

“A key component of compliance actions is the ability to suspend licenses immediately if they pose an immediate threat to the health, safety, and lives of consumers,” stated Linda Trujillo, the superintendent of the Regulation and Licensing Department (RLD), which oversees the CCD, reported Albuquerque Journal.

About The Petition

• The petition, filed with the 2nd Judicial District Court, cites several allegations against Sawmill Sweet Leaf. According to the CCD, the business has been illegally selling out-of-state cannabis and making cannabis extracts without proper permits. Such activities could potentially pose fire or explosion risks, making the establishment a threat to public safety.
• The authorities are leveraging a new provision in state law, which came into effect in June, allowing licensing agencies such as the RLD to seek preliminary injunctions if licensees engage in activity posing an immediate threat to public health and safety.

“If the petition filed against Sawmill Sweet Leaf is approved, the business will have to stop operations immediately before a potential formal hearing with RLD commences," said RLD spokeswoman Bernice Geiger.

The CCD's findings also noted that Sawmill Sweet Leaf had inconsistencies in BioTrack "compared to the business records," and was using closed-loop extraction equipment for cannabis concentrates, which the business was not licensed to operate with its Class II license.

Enforcing Cannabis Laws

According to KRQE News, the RLD's action comes amid growing concerns in the cannabis industry about the state's lack of enforcement. In June, nearly 100 cannabis industry leaders sent a letter to Gov. Michelle Lujan Grisham (D) highlighting the pressure created by certain businesses buying lower-priced products from the illicit market.

The state's action against Sawmill Sweet Leaf also follows a recent license revocation of another cannabis business, Paradise Exotics Distro, which was found to have inaccurately reported sales and sold cannabis with California stampings.

NM Recreational Cannabis In Numbers

Recreational cannabis sales in New Mexico totaled $33 million in June, according to CCD's data. That's approximately 775,000 transactions at the 1,047 dispensaries statewide. Medical sales for the same period amounted to $14.3 million, representing a slight increase from May.

“In just one year, adult-use cannabis sales have generated $300 million in our state, boosting our economy, generating revenue for local communities, and creating thousands of jobs. This is just the beginning of what New Mexico can expect from our newest industry!” said Gov. Grisham recently.

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• Photo: Courtesy Of Scott Elkins On Unsplash